One most vital roles of parents are teaching their children about finances and success. Instilling in children the concepts of earning, saving, and investing is essential in developing life skills that they can use in the future.
Opening a bank account for kids is a good idea to train them on managing their money. It is also a surefire way to boost their educational savings and other expenses. On that note, here are five of the best savings accounts for kids in Singapore.
#1: OCBC MIGHTY SAVERS KIDS ACCOUNT
If you have S$50 to spare, you can open your child’s OCBC Mighty Savers Kids Account. Enjoy a 0.05% interest to set a head start for your child. Avoid withdrawing money from your account to get an additional 0.05%. Grow your savings even more by opting to link it up with an OCBC Child Development Account to get another 1% (i.e., resulting to about 2% interest p.a.).
#2: UOB JUNIOR SAVERS ACCOUNT
Children aged 16 and below can ask their parents to open a UOB Junior Savers Account. It is a joint account with the parents, with a minimum initial deposit of S$500. The interest rate p.a. is 0.05%. Once your child ages beyond 16, the account will automatically convert into a regular savings account. This regular savings account can be used to grow their wealth during adulthood.
Available here: www.uob.com.sg/personal/save/savings/junior-savers-account.page
#3: CIMB JUNIOR SAVER ACCOUNT
For parents who are eyeing for competitive interest rates, you can consider the CIMB Junior Saver Account. It offers a higher interest of 0.3% p.a. for the first S$200,000, 0.5% p.a. for the next S$800,000, and 0.3% for anything above S$1,000,000. What is the best part? There are no fall-below fees to maintain your child’s account. Set up an account online for approximately 10 minutes. It is that convenient!
#4: MAYBANK YOUNGSTARZ ACCOUNT
Believe it or not, S$10 is all you need to open the Maybank Youngstarz Account! It has the interest rates of 0.1875% p.a. for the first S$3,000, 0.3125% p.a. on the next S47,000, and 0.3750% p.a. for anything above S$50,000. You and your child may also indulge in other benefits such as Popular bookstore vouchers and exclusive birthday privileges.
#5: POSB MY ACCOUNT
Help your child grow his or her finances by opening the POSB My Account. It works as a joint account. There is up to 3.8% interest p.a. when you convert your My Account to a Multiplier Account and it offers other benefits such as complimentary Popular bookstore 1-year student membership. The POSB Smart Buddy feature comes in handy as it automatically saves their pocket money and teaches them the importance of saving.